Major staffing models used in managing an international business
Major staffing models used in managing an international business
There are four major staffing models:
• Ethnocentric staffing which refers to using natives from the host country but use natives from the headquarter to fill vital management / decision making positions.
• Polycentric staffing which refers to the division in hiring by employing natives from the host country in / for subsidiaries and parent nationals i.e.. national from the originating country for headquarter positions.
• Regiocentric staffing which refers to the regional hiring as well as third nation citizens hiring.
• Geocentric staffing which refers to hiring which takes place based on competency without regards to nationality or citizenship.
Except the Geocentric staffing, the other three above named approaches are fundamentally flawed and belong to a previous "business age". For instance, non of the three approaches actually considers the mere fact that conducting business in other geographic location does not eliminate business fundamentals. Hence, making hiring based on citizenship / locality is fundamentally flawed. Certainly one could argue that hiring locals may illustrate benefits such as familiarity with customs, laws and general dynamics of local market; however, these factors are all available / possible for learning. The most significant factor in hiring was / should be the merit which would include education, work experience, proven track record and most importantly the ability to perform the job / task at hand to the satisfaction of all stakeholders. The same reasoning applies to as why the Geocentric staffing should be selected.
There are four major staffing models:
• Ethnocentric staffing which refers to using natives from the host country but use natives from the headquarter to fill vital management / decision making positions.
• Polycentric staffing which refers to the division in hiring by employing natives from the host country in / for subsidiaries and parent nationals i.e.. national from the originating country for headquarter positions.
• Regiocentric staffing which refers to the regional hiring as well as third nation citizens hiring.
• Geocentric staffing which refers to hiring which takes place based on competency without regards to nationality or citizenship.
Except the Geocentric staffing, the other three above named approaches are fundamentally flawed and belong to a previous "business age". For instance, non of the three approaches actually considers the mere fact that conducting business in other geographic location does not eliminate business fundamentals. Hence, making hiring based on citizenship / locality is fundamentally flawed. Certainly one could argue that hiring locals may illustrate benefits such as familiarity with customs, laws and general dynamics of local market; however, these factors are all available / possible for learning. The most significant factor in hiring was / should be the merit which would include education, work experience, proven track record and most importantly the ability to perform the job / task at hand to the satisfaction of all stakeholders. The same reasoning applies to as why the Geocentric staffing should be selected.
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